One of the most annoying aspects of running a business is having to deal with payroll on a weekly or biweekly basis. But, the fact is that your employees need to get paid, and you cannot have a proper pay structure without a payroll. It is vital to get your employees paid on time, and to get the right taxes dedicated from their salaries. Setting up a payroll is not a fun job, especially when you have a ton of other matters to resolve pertaining to your business. However, it must be done, and it must get done in the right way if you want your company to survive in the long-term.
- Incorrect Setup
The initial setup of a payroll is vital, as it will set the tone for everything that happens afterward. For instance, you must set the right amount of days between each payroll, ensure your overtime schedule is setup, and you must make sure you are deducting the right amount of payroll taxes from each employee. These matters may seem simple, but they can get complicated very quickly. If you have any concerns about setting up your business for a payroll, you may want to consult with a company that can provide payroll services.
- Falling Behind on Taxes
Depending on how you calculate and collect payroll taxes, you may find that you must put out tax deposits at a certain time. For instance, you may find that you are obligated to make your tax deposits monthly, every other week, or the day after your payroll is processed. Make sure you are certain of the requirements in your city, as you do not want to fall foul of any government regulations. Even the smallest mistake, intentional or unintentional, could cause your company to fall foul of the law.
- Overtime Miscalculations
Per certain laws, employees are entitled to a premium pay rate when they are working more than the allotted hours per week. However, many employees are not aware of the specifics of how overtime works. They assume it is anything over 40 hours a week, but every area has its own laws, and it is important to check up on these laws before you go around giving overtime, or not giving it, in certain situations. If you are confused about this, or any other payroll matter, you may want to seek assistance from Qualitas Payroll.
- Running Payroll Late
When you are starting a new business, you are assuming that everything is going to run on schedule. You assume you will get things done like clockwork. But, the truth is that a small business owner is very busy, as you have so many things on your plate. And it is not uncommon for business owners to neglect to fill out their employees’ payroll on time. However, forgetting the payroll process on the appropriate date means employees are paid late, or not as much as intended. And it means you may have to waste time correcting mistakes, which can further derail the process.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.